CC Cancels Proposed Future Bid For Highbury

The Competition Commission (CC) has today formally cancelled the reference concerning the proposed acquisition by Future Plc of Highbury House Communications, after the CC received assurances from Future that the deal had been abandoned.

The case was sent to the CC earlier in the month, after concerns were raised that the merger of the two publishing companies would result in a substantial lessening of competition within the computer games magazine UK market (see Future Drops Highbury Merger After OFT Referral).

If Future’s bid for its rival had gone ahead the deal would have created the UK’s third-largest consumer magazine, said to be worth around £96.5 million (see Highbury Confirms Future Takeover Bid).

The merger would have seen titles such as Fast Cars and Real Homes added to Future’s existing portfolio, which includes several other motoring magazines, as well as special interest titles Guitar, Maximum PC and Cross Stitcher. The combined group would have overtaken the BBC’s magazine division to make it the third largest consumer magazine publisher in the country.

Earlier this year, commercial radio broadcaster, Capital FM, agreed so sell East Midlands Radio station, Century 106 FM, so that its merger with rival GWR Group was not investigated by the Competition Commission (see Capital Sells Century 106 FM).

The Office of Fair Trading (OFT) had voiced concerns that the merger of Capital and GWR may result in increased concentration and reduced customer choice in the East Midlands, with the post merger position held by the Companies raising significant concerns for both local and national advertisers.

Future Publishing: 01225 442 244 www.futurenet.com

Highbury House Communications: www.hhc.co.uk